Government allows private firms to mine coal for commercial use

Martin Rowe

Such opening up of coal mining sector for unhindered exploitation by private and foreign corporate without any restriction on pricing and end-use will definitely pave the way for weakening and privatisation of public sector coal industry, both Coal India and Singareni Collieries Ltd, thereby affecting the coal production for both public and industrial consumption as a whole, it said.

"Opening up of commercial coal mining for the private sector is the most ambitious coal sector reform since the nationalisation of this sector in 1973", a cabinet note said. While Coal Secretary Sushil Kumar said government aims to maximise efficiency and increasing revenue is not the objective of allowing the entry of private miners. Private coal producers will thus have to sell predominantly to power producers, many of whom are not exactly in the pink of health financially.

The government was left with little option but to make enabling provisions in the Coal Mines (Special Provisions) Act, 2015 for allocation of mines by way of auction and allotment to state-owned companies for the sale of coal.

Ramanandan said Citu was not a signatory to lift the five-day strike of January 2015 but other unions were convinced after the government assured no harm for Coal India against government's decision to amend the Act to pave the way to private commercial mining. The decision was taken by the the Cabinet Co-mmittee on Economic Affairs (CCEA) under the chairmanship of PM Narendra Modi.

The methodology okayed on February 20 gives highest priority to transparency, ease of doing business and ensures that natural resources are used for national development, the statement said.

"The auction will be an ascending forward auction whereby the bid parameter will be the price offer in Rs/tonne which will be paid to the State Government on the actual production of coal".

In terms of perspective planning for the 2018/19 financial year, total dry fuel demand for thermal power plants has been pegged at 603-million tons, of which 513-million tons was expected to come from Coal India Limited (CIL), with the balance from Singareni Collieries Company and captive blocks operated by power companies. The move will also create direct and indirect employment.

But if things go as anticipated, power producers may not have to shell out more for better fuel as incoming competition will force CIL to improve the quality of coal it ships through the year.

The trade union leaders apprehend that the move will gradually kill Coal India as privateplayers will not do mining ethically. It noted Delhi had also identified big coal blocks with 40 million tonnes to 50 million tonnes reserve for bidding.

It was notified as an Act on March 30, 2015. Global mining giants like BHP, Rio Tinto, Anglo American and Glencore have been long expressing interest in prospecting coal in India.

George Washington / Presidents Day 2018: What's ClosedFeb 22, 2018 - 01:05
Whether - and how - to punctuate the holiday that falls on the third Monday in February is a real apostrophe catastrophe. William Moore McCulloch of OH argued that perhaps we wouldn't want to pay tribute to all presidents.

George, Amal Clooney donate $500000 to march against gunsFeb 21, 2018 - 03:27
In a statement, George Clooney said he and Amal are donating the $500,000 (£357,325) in the names of their eight-month-old twins. George claimed, "we're donating $500,000 to help pay for this groundbreaking event; our children's lives" depend on the movement.

Rays purge continues, OF Souza Jr. tradedFeb 21, 2018 - 03:25
Souza is the latest starter to be let go by the Rays, who are in rebuilding mode. "And I think this is not a shocker to anybody. Of course, Drury could also be New York's primary third baseman with Tyler Wade and Ronald Torreyes handling second base.

The movie "Black Panther" is a box office sensationFeb 20, 2018 - 18:33
As " Black Panther " mania sweeps the nation, one man proposed to his girlfriend during a screening of the movie in Brooklyn, N.Y. Lack of representation is not just a Hollywood issue. "So we founded an organization to make those connections real".

Sony forms alliance to bring AI ride hailing service to JapanFeb 20, 2018 - 18:28
The services developed will be offered to all platforms available to taxi operators that wish to participate across Japan. That's a turnaround from previous boss Travis Kalanick who largely left the country in the hands of a country manager.

McIlroy defends Woods at RivieraFeb 18, 2018 - 03:07
A bogey on the fourth hole was offset by a bird on the ninth. "I am progressing. He tied for 23rd in his first, last month's Farmers Insurance Open in La Jolla.

The Russian Indictments: Where Were James Clapper and John Brennan?Feb 18, 2018 - 03:06
Lavrov argued that US officials, including Vice President Mike Pence, have said no country influenced the USA election results. It marks the first criminal charges against Russians believed to have secretly worked to influence the US election's outcome.

Roberto Firmino wants Liverpool to make Porto sufferFeb 17, 2018 - 00:21
'At the end of the day, we could reach €50m with bonuses, but at that moment we had to sell and that was an important option'. There were a total of 11 goals in Porto's last two UEFA Champions League home games.